Correlation Between Glencore PLC and Premium Nickel
Can any of the company-specific risk be diversified away by investing in both Glencore PLC and Premium Nickel at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Glencore PLC and Premium Nickel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glencore PLC and Premium Nickel Resources, you can compare the effects of market volatilities on Glencore PLC and Premium Nickel and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Glencore PLC with a short position of Premium Nickel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glencore PLC and Premium Nickel.
Diversification Opportunities for Glencore PLC and Premium Nickel
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Glencore and Premium is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Glencore PLC and Premium Nickel Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Premium Nickel Resources and Glencore PLC is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Glencore PLC are associated (or correlated) with Premium Nickel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Premium Nickel Resources has no effect on the direction of Glencore PLC i.e., Glencore PLC and Premium Nickel go up and down completely randomly.
Pair Corralation between Glencore PLC and Premium Nickel
If you would invest 0.00 in Premium Nickel Resources on January 17, 2025 and sell it today you would earn a total of 0.00 from holding Premium Nickel Resources or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.59% |
| Values | Daily Returns |
Glencore PLC vs. Premium Nickel Resources
Performance |
| Timeline |
| Glencore PLC |
| Premium Nickel Resources |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Glencore PLC and Premium Nickel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glencore PLC and Premium Nickel
The main advantage of trading using opposite Glencore PLC and Premium Nickel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glencore PLC position performs unexpectedly, Premium Nickel can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Premium Nickel will offset losses from the drop in Premium Nickel's long position.| Glencore PLC vs. Anglo American PLC | Glencore PLC vs. Teck Resources Ltd | Glencore PLC vs. BHP Group Limited | Glencore PLC vs. Vale SA ADR |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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